From knock-off old-man's electric vehicles to industrial giant

Chapter 84 Never mind—far ahead!!

"hiss--"

Hear this.

The group from Chengzi Group inhaled the cold air directly into their lungs.

Annual sales of 200,000 units?

Three hundred thousand units?
That would generate a huge amount of employment and tax revenue.

It is a top-tier automobile company in China.

How can a place like theirs nurture such businesses?

That's all.

Xu Yi dared to say that none of them dared to think any further!

That's a bit too exciting.

If it really works, wouldn't it take off?
……

of course.

They had done calculations before they came.

A conservative estimate.

If we estimate Xingchen Motors' current manufacturing scale based on the model of a new energy vehicle company that sells 80,000 units per year.

If we're optimistic, annual sales of over 100,000 units are also possible.

This is a significant bet for the local area.

However, the vehicle's price and technology are still somewhat limited.

Annual sales of 100,000 units, entry-level cars costing tens of thousands of yuan.

And luxury cars with annual sales of 100,000 or more, priced at 200,000 or 300,000.

The overall scale and influence are completely different, as are the levels of technology.

The latter has influence and competitiveness, and can drive the upstream and downstream of the industry, while the former is easily eliminated.

“Well, Mr. Xu… Your company’s future goals are indeed far-sighted, but let’s talk about the short-term plans first.”

Li Yiguang wiped his sweat.

Xu Yi nodded: "We plan to invest in building a new Industry 4.0 automobile factory, with a planned annual production capacity of 50 new energy vehicles to expand the production of existing models. In addition, we will apply for independent new energy vehicle manufacturing qualifications and independent sales qualifications simultaneously..."

The Guojin Automotive Factory, which is currently undergoing renovations, has a limited production capacity.

Although the Star Mini has a simple structure and the assembly process is not complicated, its annual production of 200,000 units is about the limit without additional expansion.

Don't be fooled by the fact that an annual production of 200,000 cars seems like a lot.

In reality, when spread out, the monthly sales volume is only around 16,000 to 17,000 vehicles.

For the huge market of microcars, this number is really not that many.

Therefore, building a new 4.0 factory is an urgent matter.

Batteries, motors, electronic controls... stamping, welding, painting, final assembly.

The layout is based on full-process digitalization and automation.

The total investment in the factory is around 15 billion to 2 billion yuan, covering an area of ​​300 acres. In addition, supporting facilities must be considered, and the more land and funds available, the better.

To solve the problems of low-priced land and large sums of money for factory construction, it depends on the sincerity of local government capital.

Take Xingchen Motors as an example. With initial sales and real-vehicle performance as a benchmark, it is extremely popular no matter which province it is located in.

After listening to Xingchen Motors' plan.

Du Ruihong, the deputy general manager in charge of industrial investment at Chengzi, began by saying:

"Based on the model of equity financing plus industrial development, we can initially provide a total investment fund of one billion yuan for the project, requiring an 8% equity stake. In addition, we can provide 300 mu of low-priced industrial land, with the government waiving 50% of the fees, plus 100 million yuan in land reduction and exemption fees..."

Before arriving, the city investment team had already done the calculations.

This includes land transfer conditions, investment intensity, production capacity compliance rate, tax contribution, industrial chain impact, exit mechanism, and equity ratio...

These all have standards.

It's not that you can invest as much as you want; it depends on the other party's production capacity and tax revenue.

Based on the total assets of Zibo City Investment Group, the annual industrial investment budget is approximately 2-25 billion yuan, and allocating 1 billion yuan is already considered a key annual investment.

From the perspective of risk control and performance evaluation, they believe this condition is quite sincere, and there should be no problem with building a new 4.0 factory and successfully establishing the industry.

but.

After these conditions were stated, they did not see any particularly interested expression on the faces of the Xingchen Motors team in front of them.

"Mr. Xu... do you have any other questions about the investment model or funding?" Du Ruihong couldn't help but ask.

"Yes."

Xu Yi nodded frankly.

"In terms of funding and land, we still lack a bit for our future plans..."

Please feel free to make any requests you may have.

"Frankly speaking, we need at least 2 billion yuan in investment funds, preferably 800 mu of free land transfer, and a refund of the local share of value-added tax, with an equity ratio not exceeding 3%."

This investment refers to Xingchen Automobile Sales Company, not Xingchen Technology Company.

Strictly speaking, Xingchen Technology, a personal company wholly owned by Xu Yi, holds all automotive patents and current battery pack technologies, including the assets of Xingchen Automotive Company.

"..."

As soon as these words came out.

The entire city investment team was completely dumbfounded! Huh—?
Dude, I asked you to state your needs, not to make wishes!!
“President Xu, this doesn’t seem right… You’re going to build two 4.0 factories on 800 acres of land?” Du Ruihong pondered.

That's an outrageous request.

Of course, the other two requirements aren't much better.

For investments like this, besides looking at sales volume, the remaining factor is the expectation brought about by technological strength.

Upon hearing this, Xu Yi smiled slightly.

"You have just learned about the factory capacity and sales expectations of Xingchen Motors, but you still lack details about our technological reserves."

such as.

Although the power battery cells used in our Xingchen Automotive vehicles are sourced through the supply chain, we also participate in some research and development and customization.

Our custom-designed A1 cells currently achieve an energy density of 90Wh/kg, placing them among the industry's top-tier performers.

As soon as these words came out.

The entire city investment team looked a little more normal.

Do they have experience in battery technology?
That's definitely different from ordinary car companies.

It's important to understand that advanced power battery technology involves many aspects and drives a wide range of industries.

So, does that mean another battery factory is going to be built?
That 800 mu of land makes perfect sense.

But this level of technological reserves seems a bit insufficient, doesn't it?

Moreover, it was something we participated in research and development, not something we developed independently.

But it's not over yet.

What Xu Yi said next really made them uneasy.

"Of course, the A1 battery cell is not considered particularly advanced when placed in the upstream of the entire industry."

and so.

To enhance our technological reserves and capture a larger market share, we independently developed the A2 power battery cell.

We already have verification samples ready for production; you can take a look.

...

aside.

Wang Jingming had two technicians bring over a set of brand-new battery cell samples and place them in front of everyone.

Detailed instructions and a printable PowerPoint presentation are also included.

Then, with a touch of pride, he introduced:

"Dear leaders, the A2 lithium iron phosphate power battery cell is made entirely with our internally developed technology."

Energy density, cycle life, and safety performance have all been significantly improved.

After mass production, the system energy density is expected to increase to 110Wh/kg.

To reach the industry's top-tier leading level!

...

"Based on improved chemical formulations and manufacturing processes."

Our A2 battery cells achieve a 22% cost reduction while maintaining industry-leading energy density!

hiss…

As soon as he finished speaking, someone gasped.

The team members present may not be very familiar with the technical details.

However, they all have some knowledge of the new energy industry.

The development of battery technology is fundamental to the upstream and downstream industries of new energy.

In other words, the biggest cost of new energy vehicles is the power battery.

This means—

Xingchen Automotive not only has battery technology reserves, but it also appears to be very advanced.

The key is that costs were reduced by 22%!

This is a real increase in corporate profit margins!
At that moment, they were genuinely tempted!

but.

It’s not over yet! !

Xu Yi gestured slightly, and the city investment team members present received another new PPT.

He said in an incredibly pretentious way:

"Actually... the A2 battery cell is just an improvement on current technology, and it can't be considered a real technological reserve."

"Our internally developed 'Polarstar Battery' adopts a domestically pioneering large-cell structure and its chemical formula is entirely independently developed. It is expected to be validated within two quarters!"
By then.

Energy density increased to 160Wh/kg! 50% higher than the industry average!

Cycle life increased to 3,000 cycles! Leading the industry!

Its safety features can withstand needle punctures and external pressure! Leading the industry!

Total cost reduction...again exceeding 20%!

In short—far ahead!!!

……

(End of this chapter)